Housing society must insure building instead of individual flat owners

Housing society must insure building instead of individual flat owners

A third-party insurance covers the financial loss only against any legal liability that the owner may incur due to the death of or bodily injury to a third-party or damage to the property of a third-party while using the vehicle

House and its contents are best protected through home insurance cover. This is a comprehensive policy and can protect the building and its contents against fire and allied perils including earthquake, terrorism etc. (Reuters)

House and its contents are best protected through home insurance cover. This is a comprehensive policy and can protect the building and its contents against fire and allied perils including earthquake, terrorism etc.

The contents can also be protected against burglary and theft. Costly home appliances can be insured against accidental breakdowns. In addition, there are sections that can be taken for personal accident insurance, liability towards servants in the household etc.

Is it mandatory to take insurance on the gold kept inside the locker?

—Ritesh Jain

It is not mandatory, however, it would be advisable to protect them against burglary/robbery, damage, accidental loss etc. by taking an all risk insurance cover. You can avail this cover under home insurance package policy.

Can I take only the third-party insurance for my car insurance?

—Rahul Agarwal

It is the choice of the customer to cover the car only for third-party liability insurance, which is a statutory requirement under the Motor Vehicles Act or a comprehensive cover for the car and third-party insurance. A third-party insurance covers the financial loss only against any legal liability that the owner may incur due to the death of or bodily injury to a third-party or damage to the property of a third-party while using the vehicle. People may normally opt for third-party coverage only considering financial aspects, age of vehicle, limited use of vehicle, etc. They also have the option for a restricted cover for liability only and fire and/or theft risks in case they wish to have an improved coverage at lower premiums. For new and costly vehicles, it is always advisable to take a comprehensive cover, which insures the owner against both, damage to owned vehicle as well as third-party liability.

Is there any way to insure my land title as I want to make sure a hassle-free home buying?

—Praful Bohra

As of now this insurance cover is not available in the Indian market. Recently, our regulator has taken some steps to explore the possibility of allowing this type of insurance cover in the Indian market, so it may become available in the near future.

My builder says he has not done insurance for the housing complex. As an individual, can I insure my flat?

—S R Rao

In some states, as per the co-operative housing society model, the ownership of the building rests with the society. So, it is suggested that the society insures the entire building instead of the individual flat owner taking insurance. This is also important from the point of view of reconstruction of the building following a damage. If the entire building is not insured, many occupants may not have enough money to contribute for the reconstruction of the building. So, the insured flat owner will not be in a position to reconstruct his flat alone.

As an individual, you can always insure your flat along with the contents and valuables under a comprehensive home insurance package. You may opt for covers like fire insurance including flood and earthquake for contents, burglary for contents, electronic equipment insurance for electronic items, machinery breakdown insurance for household electrical/mechanical items such as AC, washing machine, refrigerator etc, personal accident insurance, worksman insurance for domestic servants, all risk insurance of jewellery and valuables and laptop etc. In case of a calamity, if the building itself is not insured but you have your flat insured, claim will be payable to you only for the loss or damage to your flat and up to the limit specified in your policy.

I want to take a travel insurance to visit Europe. Is it mandatory and what will it cover?

—Mihir Ahuja

For Schengen visa, it is mandatory to have approved travel insurance cover. The concerned authorities have approved certain insurers in India and their products.

Travellers are expected to avail minimum benefits under this cover. Travel insurance plans take care of any contingencies that might arise during your journey; like sudden illnesses, accidents, misplaced passport, lost luggage, etc. You may also look at online only travel insurance products offered by some insurers which are not only cost effective but also provides numerous plans to choose from.

Mr. Rao, you are the MD of the worst kind of insurer in India. I've personally had a very bitter experience with this organisation. I cringe at the very thought of them shamelessly soliciting for business, where they do not have any worthy credentials. There is no way to escalate matters to the senior managers with their contacts inconuously hidden. Their CEO had to quit for fraud on foreign regulations and IRDA slapped a fine for their irregularities. It is a shame these fellows are given print space in media.